Authorities are now using advanced technology to find out which cars have insurance and which are not. Your insurance records are registered with DMV and if you cancel your policy or it is cancelled they will know about it. Companies are obliged to inform DMV when a policy is not in force any more.

If you are taking your automobile off the road you should contact and let them know. Otherwise, they may start chasing your with notices that will shortly be followed by fines. Any vehicle that is left or driven on public roads need to be insured. If you aim to keep your vehicle off the road then you can do away with your policy.

Depending on where you live you will have different level of penalties for driving without insurance. You will be in real trouble if you cause an accident while you are not insured. You may even end up in jail. there is a high chance your vehicle may be taken away from you until you come back with a valid policy. You may have to pay for storage charges for every day that is kept. So, you will need to hurry.

Facing Liability Claims on Your Own

More serious problem is the possibility of facing liabilities claims on your own. If you don’t have insurance to cover for the damages and injuries you caused you will have to pay for them out of your pocket. Since you can never know how big these losses may be you will be taking a huge risk by driving without coverage. Even you don’t have enough money to pay them, you may be required to make payments out of your salary every month.

Covering Your Own Damages

Then there is the damages to your own automobile. If you have a fairly valuable car and no spare money to buy another one you will be losing your investment and stranded without transport. Most people can handle monthly premium payments but they cannot handle a sudden loss of their vehicle. This is something to think about carefully. You never know what happens once you are on the road.

While you are trying to save little money you may put yourself in real trouble. You need to think carefully if it is worth it and if you really have to drive. Another option is obviously not to drive while you don’t have coverage.

Low Cost Auto Insurance

Depending on where you live your state may offer low cost policies to help lower income drivers buy coverage. There are a few states that are running these schemes. For example, in California motorists are able to find policies for around $400. These are reduced liabilities policies that are specially designed to get more people insured.

You should look at your options, shop around hard to find the lowest premiums on offer. Giving up without trying hard is not a good option as explained above. Insurance protects policyholders in many ways. It would be great if you could find a way to pay the regular premiums and be on the safe side.